The Related Consumption Trend Brought By "Football Economy" Promotes The Sustained Growth Of Climbing Performance.

Inspired by the Chinese government's policy of developing sports and encouraging soccer, the relevant consumption trend brought by the "football economy" promotes the company.

XPD Soccer Gear Group Limited (ASX:XPD) continues to grow strongly.

In strong

With the support of demand and the support of core distributors, hi climbing is striving to go out of a way of expansion.

It is reported that we are committed to building China's football equipment.

The climbing company announced earnings performance in the first quarter of the fiscal year.

Due to the strong demand for products, hi climbing plans to build a new production base outside Fujian province.

Domestic football market continues to heat up

According to the hi climbing announcement, as of the first quarter of March 31st, the company reported operating income of 29 million Australian dollars, an increase of 19.7% over the previous year, 138 million yuan, an increase of 15.1%, and a net profit of 5 million 300 thousand Australian dollars (24 million 800 thousand yuan) after the tax.

In the first quarter, the gross profit margin of the company remained at 33%, and its net profit margin increased from 16.2% in the previous year to 17.9%.

At the end of the quarter, the cash balance was 29 million 700 thousand Australian dollars.

During the season, the total sales of 2 million 500 thousand pairs of shoes and 64% of them were football climbing shoes.

At the end of the quarter, there were 2070 retail outlets.

The hi climbing plan will increase the distribution point to 2500 in the next two years.

Statistics show that the hi climbing football equipment company is a related entity of China Super shoes and Garments Co., Ltd., headquartered in Jinjiang, Fujian, China, which was listed on the Australian exchange in May 2015, and the IPO issue price is 0.2 Australian dollars.

This year, the climbing share price has been stealthy under the issue price, but it has risen slightly since last week.

Investors have strong confidence in the company's future.

In May 19th, hi climbing announced to the market, to the senior investor of the company's core distributors, to issue 35 million new shares with a 0.21 Australian dollar and raise 7 million 350 thousand Australian dollars to support commercial development activities and future acquisitions.

Climbing to the market on 31 May, we like to say that the macro market environment continues to operate well. Due to the shortage of products, the factory capacity in Jinjiang, Fujian will be exhausted. It has invested in a real estate development company HY (Henan Yuanlong Industrial Co., Ltd.).

We are planning to install 2 new shoemaking lines from the HY rental site and two factories, and expand it to 5 in the next two to three years. It is estimated that the company's capacity will increase by 2 million pairs per year by 2017.

HY holds 480 mu of land in Henan and has 8 factories.

Climbing said that Henan's low labor costs and perfect logistics facilities are the ideal location for building factories.

The Chinese central government strongly supports football, especially campus football, and integrates football field construction into urban planning and urban construction planning.

The goal of China's Ministry of education is to have more than 30 million students regularly participate in soccer training by 2020.

We like to make youth soccer a major growth area. We are ready to expand R & D investment and expand youth products.

In marketing and brand image building, we should take measures to support campus football, pay attention to the development of "climbing climbing" football clubs, support amateur and grassroots football.

The long and medium term goal of climbing is to build the first brand of Chinese football equipment with public service plan + direct selling strategy + overseas expansion + winning brand as the four pillars.

Climbing in its strategic planning, climbing said that it would pursue multi-channel development models, including expanding and strengthening the distribution network of domestic entities, and developing mobile applications and e-commerce channels. When the conditions are ripe, flagship stores and standard stores will be used as the direct selling mode.

Geographically, we will explore opportunities for distribution and retail in Southeast Asia and Australia, including sponsoring Australian youth soccer events.